In this article we discuss the 5 best dividend stocks to buy now according to billionaire Cliff Asness. If you want to read our detailed analysis of Asness’ history and hedge fund performance, go directly to the 10 Best Dividend Stocks to Buy Now According to Billionaire Cliff Asness.
5. Two Harbors Investment Corp. (NYSE: TWO)
Asness’ Stake Value: $312,000
Percentage of Cliff Asness’ 13F Portfolio: 0.001%
Dividend Yield: 9.65%
No. of Hedge Fund Holders: 18
Two Harbors Investment Corp. (NYSE: TWO) is essentially a real estate investment trust (REIT) that manages and finances mortgage-backed residential securities (RMBS), mortgage servicing rights, and non-agency securities, among other financial assets in the U.S. The stock ranks 5th in the list of best dividend stocks to buy now based on Cliff Asness’ 13F portfolio.
Two Harbors Investment operates as a REIT for reasons related to Federal income tax. REITs are required by law to distribute 90% or more of their taxable income to shareholders. The company recently announced its Q1 2021 financials, revealing that its book value at the end of the quarter ended March 31 was $7.29 per share. The quarterly return on that book value was (2.2)%.
The company’s core earnings were $45.8 million or $0.17 per weighted share (common stock). Its comprehensive income was $(48.5) million, representing a 9.3% annualized return on equity. Two Harbors declared its Q1 2021 dividend at $0.17 per share. Some of the key developments in Q1 include the issuance of 5-year convertible senior notes due 2026, whose principal amount was $287.5 million. It bought back and retired convertible senior notes due 2022, whose principal amount was $143.7 million. Two Harbors Investment Corp. (NYSE: TWO) finalized the redemption of $200 million Series E, and $75 million Series D preferred shares.
4. PennyMac Mortgage Investment Trust (NYSE: PMT)
Asness’ Stake Value: $819,000
Percentage of Cliff Asness’ 13F Portfolio: 0.001%
Dividend Yield: 9.71%
No. of Hedge Fund Holders: 15
PennyMac Mortgage Investment Trust (NYSE: PMT) is a finance company that specifically invests in mortgage assets in the U.S. The company released its Q1 2021 financials on May 6, revealing that it generated $65.4 million in net income attributable to common stock shareholders. The net revenue figure for the recent quarter was significantly lower than the $76.6 million net revenue that the company achieved in the previous quarter.
PennyMac Mortgage Investment Trust recently announced the pricing and upsizing of a private offer of its Exchangeable Senior Notes due 2026, whose principal amount is $300 million. The company plans to use the net proceeds from the private notes offering for general corporate purposes such as funding its investment and production activities, as well as those of its subsidiaries.
PennyMac Mortgage Investment Trust (NYSE: PMT) recently announced a quarterly dividend of $0.47 per share, which aligns with the previous dividend.
3. Fanhua Inc. (NASDAQ: FANH)
Asness’ Stake Value: $890,000
Percentage of Cliff Asness’ 13F Portfolio: 0.001%
Dividend Yield: 9.73%
No. of Hedge Fund Holders: 8
Fanhua Inc. (NASDAQ: FANH) is an insurance company that sells insurance products in the Chinese market. The company revealed in its Q1 2021 report that it had 4,730 claims in the period, representing a 61% year-over-year increase. The total cost of the insurance claims was 142,168,300 yuan, which represents a 50% year-over-year increase. Illness and death benefits, medical payments, and major illness benefits were the three top categories. FANH ranks 3rd in the list of best dividend stocks to buy now according to Cliff Asness.
The company declared a quarterly dividend of $0.25 per share in March 2021.
2. Chimera Investment Corporation (NYSE: CIM)
Asness’ Stake Value: $1,053,000
Percentage of Cliff Asness’ 13F Portfolio: 0.001%
Dividend Yield: 9.8%
No. of Hedge Fund Holders: 16
Chimera Investment Corporation (NYSE: CIM) is a U.S-based real investment Trust (REIT). The company recently announced its Q1 2021 financials, revealing that its net income for the three months ended March 31 was $139 million, or $0.54 per share. Its core earnings for the same period amounted to $87 million, or $0.36 per share. The stock ranks 2nd in the list of best dividend stocks to buy now based on AQR’s 13F portfolio.
Chimera Investment Corporation (NYSE: CIM) board of directors declared a quarterly cash dividend of $0.33 per share (common stock) in Q2 2021. The dividend payout is scheduled to take place on July 30.
1. Nordic American Tankers Limited (NYSE: NAT)
Asness’ Stake Value: $68,000
Percentage of Cliff Asness’ 13F Portfolio: 0.001%
Dividend Yield: 11.9%
No. of Hedge Fund Holders: 5
Nordic American Tankers Limited (NYSE: NAT) is a company that ferries oil through chartered or acquired double-hull tankers. The company recently revealed that Alexander Hansson, the son of NAT CEO, acquired 40K shares of the company, priced at $3.16.
Nordic American Tankers Limited (NYSE: NAT) released favorable earnings for Q4 and full-year 2020. Its full-year net income was $50 million, with earnings per share of $0.34. In comparison, the company reported a $10 million net loss in the previous year and a -$0.07 EPS. The stock ranks 1st in the list of best dividend stocks to buy now according to billionaire Cliff Asness.
You can also take a peek at 10 Extreme Dividend Stocks with Huge Upside and 10 Blue Chip Dividend Stocks Hedge Funds Are Buying.
